12 questions
Which of the following is not a component of HDI?
Healthcare
Environmental issues
Education
Income levels
What is the most popular measure of the difference in living standards between countries?
Average price level
Real gross domestic product per head
The size of the population
The value of the currency
In what circumstance would a fall in working hours be most likely to increase the standard of living?
The average income falls
The level of output remains unchanged
The rate of unemployment rises
The standard of working conditions falls
Which statement best explains why a country's real GDP per capita is likely to affect its citizens' standard of living?
Higher real GDP per capita means the average citizen can buy more goods and services.
Inflation must be accounted for when considering living standards.
Real GDP per capita always falls when the population size increases
Real GDP per capita is the only measure of living standards in a country
What measure of living standards is included in HDI, but not in real GDP?
education
gender equality
income
leisure time
Why might GDP per head rise and yet living standards fall?
Income may be more evenly distributed
Levels of pollution may have risen
The size of informal economy may have risen
Working conditions may have improved
To make Gross Domestic Product a better measure of comparative living standards it needs to be adjusted by
deducting the effects of exports and inflation.
deducting the effects of imports and exports.
deducting the effects of population change and exports.
deducting the effects of population change and inflation.
In what circumstance would a fall in working hours be most likely to increase the standard of living?
The average income falls
The level of output remains unchanged
The rate of unemployment rises
The standard of working conditions falls
What measure of living standards is included in HDI, but not in real GDP?
education
gender equality
income
leisure time
Why might GDP per head rise and yet living standards fall?
Income may be more evenly distributed
Levels of pollution may have risen
The size of informal economy may have risen
Working conditions may have improved
A government decided to increase its spending on building schools and hospitals. Which aim of government policy is most likely to be achieved by this increase?
a balance of payments surplus
a stronger exchange rate
economic growth
price stability